About this Show

Closing Bell With Maria Bartiromo

News/Business. Maria Bartiromo. Analysis of the day's winners and losers in the stock market. New.

NETWORK

DURATION
01:01:00

RATING

SCANNED IN
San Francisco, CA, USA

SOURCE
Comcast Cable

TUNER
Channel v58

VIDEO CODEC
mpeg2video

AUDIO CODEC
ac3

PIXEL WIDTH
704

PIXEL HEIGHT
480

TOPIC FREQUENCY

Us 20, Dell 14, U.s. 7, Cisco 6, Bob 5, Blackberry 5, Brazil 5, Underarm 4, John 4, Ec 3, Nordstrom 3, Rob Morgan 3, Spain 3, Michigan 3, S&p 3, Rick Santelli 3, Lenovo 3, Michael Dell 2, Bob Dahl 2, Dennis Gartman 2,
Borrow a DVD
of this show
  CNBC    Closing Bell With Maria Bartiromo    News/Business. Maria Bartiromo. Analysis of the  
   day's winners and losers in the stock market. New.  

    August 15, 2013
    4:00 - 5:01pm EDT  

4:00pm
of options in futures contract. maria, you have a lot of earnings that could set the tone. most intriguing would be dell. >> we will see you tomorrow. there's the closing bell. >> and it is 4:00 on wall street. do you know where your money is in hi, everybody, welcome back to "the closing bell." they have their dig i biggest one-day decline, take a look at the damage t. dow jones industrial average down 225 points. that's 1.5% on the dow t. nasdaq gave up 63 points the low of the day, 1.75%. nasdaq technology taking a hit. s&p technology down 24 points.
4:01pm
mid-august swoon on wall street t. dow posting the lowest decline since june. all time high set two weeks ago. bob, what did you make of today's sell-off, bob? >> well, it was the worgst in six weeks for the dow. worse than -- actually two months i believe for the dow. i'm still settling down here. the important thing is, look, bottom line, it was right across the board, risk reduction. we saw consumer stocks. everything was down 1.5 to 2%. look at the dow, after 10:00, we essentially flatlined around 10:00. we ended near the lows for the day. here's the two headlines we have been talking about all day, what's fair value for the ten year in neb knows. that's the biggest single issue down here. if you tell me the answer to that, i'll tell you where thing will be going. we are not talking the growth. cisco, macy's, wal-mart throwing that earnings growth picture into some kind of doubt t. result is that risk reduction.
4:02pm
i would note moderate volume throughout the day. how about the bellwhether blues, that's what we're calling it when you got cisco and wal-mart, both big dow components coming out with disappointing commentary overall. how about gold? gold popped to near two-month high today a. lot of people were talking about that. commodity stocks moved up. we had a very interesting drop in the dollar shortly after gold picked up, copper has been up for several days now. alluminum an zinc. overall, home builders, well, we had excellent home building sentiment numbers today, very good. one of the only groups, this group declined about 20% from the highs we saw in may. a lot of people whom i talked to said this was a time to now consider getting back into the home builders. take a look at how far off their highs. some of the big names, horton and kb home.
4:03pm
toll brothers is in the move-up space. you will see they were all down. there was a differentiation. the most finally, maria, that 10-year intra-day. tell us what the value is? nobody knows that. the next big event, i was talking to the traders, jackson hall, august 24th. they are so desperate for any guidance in where this ten year ought to be that people are now tuneing into whoever is going to that vent. >> joining me now to help break down the day, heather hughes, rob morgan from full crum securities. allen gayle from ridgeworth and rick santelli. to what would you attribute such negativity? >> in the ridgeworth strategy, i'm always looking for tracking entry points in reasonably valued assets that have improving macrobackgrounds.
4:04pm
i think the information we got on the macro front is encourage. so when i see a sell-off like we got today, i would view it as an opportunity to add positions in equity. i'm more inclined to add on the international front. >> we want to get to dell earnings. dell is out right now. john has the numbers. what can you tell us, john? >> not too bad, maria, based on what wall street was looking for, dow's revenue comes in $14.5 versus an expectation of 14.18 earnings per share. non-dak at 25 cents versus 24 consensus. dell is no longer giving guidance. it appears from my look at this that end user computing, that's pcs, down year over year less than they were last quarter. last quarter, they had a 9% decrease. this quarter, they're reporting now a 5% decrease to $9.1
4:05pm
billion. they have highlighted the enterprise solutions software group revenue was actually up 9%. is the future of dell. many would argue it's an area where michael dell certainly would like to focus if he gets to take this company private ap move him more away from pcs into i.t. solution, areas like this. so i think perhaps some people were expecting negative results given that dell is announcing it early. they're at least from the first cursory glances, will is a lot to like in this. we have to pour through and do analysis. dell is not actually doing an earnings call on these results this evening, maria. >> all right. john, stay with us. we will get more reaction. joining us is a senior technology analyst with the maxim group. what can you tell us in terms of these dell numbers? what's your take? >> maria, looking back at the expect aition, i think your results across the board were bet beer than the consensus expectation. again the company is a price
4:06pm
aggressor in the market, continuing to maintain their shared momentum on the interside prize of the markets. the near term the trends of dell given the macro backdrop. >> okay. but the macro backdrop doesn't seem like it's getting any better, right? >> i think, overall, the pc unit declines are double digits. if you look at it the second half, maria, you see the peak of the cycle is installed based on windows xp to windows 7. so that should benefit dell. looking out at 2014, i think it gets much tougher as we put that behind us. >> what would you do if you were an investor if dell right here? >> i think near term i think if you look at fair value on a fundamental basis, we are looking at $7 to $9 on a stand-alone basis. that's afforded to pc our client based companies, hewlett packard, western digital. but given the offers on the table, we think we gain the fair
4:07pm
dollars in the $fifteen 13 to $15 range for dell. >> john, any thoughts in terms of why dow moved up the earnings reless in. >> you know, i don't really know why they did that, maria, something interesting i will point out, after hours at least the stock is up near 1380. when you consider the amount that michael dell is offering for the company, 13.75 per share, it might be interesting to talk about what investors are expecting to happen next. clearly, these results are good. is that good for michael dell? is that bad for michael dell? does this play into carl icahn's argument, maria? >> that's an important point we look at the stock trade here after hours, pretty active. 13.79. thank you, john. we want to get back to these markets. rob morgan from full crum security. and our own rick santelli, heather, you have also be been
4:08pm
bullish. allen just said when you see a market like this it gives him poise to put new money to work. would you put new money into this market here? >> judging on the last hour of the day into the close, we didn't see bids, i am not getting the warm and fuzzy feelingings at these levels. i understand you stated some of the statistics in the beginning of the program. this is also the largest weekly decline that we've had in the past four months in the dow jones. so as far as animal spirits in august, they may remain tame right now and you will see volatility and volume, increase perhaps after some of the main september events like fed taper talk or jackson hole on the 17th of september. >> yeah, i guess what we learned today was that it really is all about the consumer. you know, two-thirds of economic activity. but wal-mart disappoint with the guidance, cisco cuts 5% of its work force. so rob morgan, is this market now focused on something other than the fed. is this market now turning its attention to the whied that the
4:09pm
economy is not doing much. so regardless of whether the fed is going to be there the next couple of months, we are seeing a real weakening. >> maria, obviously, the market was focused on wal-mart earnings today, which were weak in kohl's, cisco's bad guidance be you the fed is still looped in there. part of today is a kevin that the fed is going to taper in a way that is detriment am. so i think that concern is still out there. it's kind of like the sword of damacles if you will. i tend to agree with a what allen was saying, it was something was ignored today, weekly and initial jobless claims hit a six-ier low. i'd be putting more money to work here, too. >> we want to get back to you in a moment, dan, on. that i look at domenic chu. he is covering nordstrom earnings. what do they tell us given what we heard from wal-mart today?
4:10pm
>> again, a lot of a mixed picture with john in order strom. the bottom line, 93 cents. beats the analyst's estimate of 88 cents per share. you look at the top line the sales numbers. some of the problems manfest themselves, $3.3 billion is what analysts were expecting, sales from nordstrom at $2.2 billion. nard strnordstrom cuts the full sales fiscal 20 thrown will be up 3-4%. wall street an liths were on average looking -- analysts were on average looking for a share t. nordstrom shares are taking a bit of a dive right now in the after market on the heels of this. so earnings beep, a sales miss, they do lower their forecast. so, maria, it tells you a little bit more about the overall consumer picture specifically on
4:11pm
the higher end of things. >> domenic, thank you very much. we want to bring in warren. a tough day, down 225 point. how would you characterize today's trading? >> very interesting. the dow broke its 50-day average this morning. sent people into a bit of a panic. the one thing i would say is obviously there was quite a bit of selling today, but it almost fell it was more a lack of any support on the buy side that sent this market lower, not just massive panic selling. so if you want to take away a positive out of the action we seen today, it might be that. >> does it feel like it continues going into tomorrow? ralph has been bullish on this market for a long time told me earlier that you probably want to take some profits until he feels that we have reached a low and he doesn't think we have reached it yet. how do you see it in. >> well, i think, you know, i have been very bullish the last number of months. the last week, markets felt very
4:12pm
tired. we are coming into that typical period, end of august, beginning of september, it's usually a light period, so any move him, any directional movement one way or the other will have an exaggerated effect. i would say this would be a little more of a pullback. i don't think we hit bottom yet. again with eneed a catalyst to indicate, we hit the floor. i don't know what that means. we pay have to wait until the non-farm payroll in september. it leaves a gap here. so i would be a little cautious right now. >> you are cautious. allen, you say when you see a market down 225 points, this gives you poise to say, you know what, this is a buying opportunity. did you put money to work? >> we are looking for those undervalued assets. so the last trade that i did was to add to the international space. we like europe. we particularly like germany. we think the valuations are good, that pick-up in the pmis we have been seeing, increase in
4:13pm
gdp as you well know all suggests that the worse is the over. so at the margin, we think there is some good value. i have been underweight international at some time. >> are you rebuilding international. what does that tell me about the u.s.? cisco told me real stories about the u.s. >> well, about second quarter earnings, i think that what i have been seeing in the macrodata looking at the new orders and the like, yes, sales were weaker, new orders suggested we're going to have better momentum the sec half of the year. so from a sect zor standpoint. >> i get you one second, heather, rick santelli, it feels like today, at least, the market focused on the idea that the economy is anemic sputtering along as opposed to bad fuse meaning food news that the fed is going to be there. >> you know, i think the market
4:14pm
is a lot like university of michigan sentiment. it doesn't leave the stockmarket. the stockmarket leads the feel-good endis cease. i do think when you are down 225 points, everybody looks at the markets from a different set of class ifs. other than the two earnings, i don't want to dismiss them. they were big, those misses, i think not a lot has changed. we have gone from all the economists thinking the next quarter will be a stellar quarter to all of a sudden everybody hating it. what i look at is we've really seen a steady eddie-type treasury market. i continue to think how your rates will not be good for the economy. i think the stockmarket willed a why you town. >> heather hughes what are you seeing here? >> we are seeing stock sell-off and bond sell-off. the next six weeks historically have been a challenging time to invest. >> we'll leave it there. thanks, everybody. we appreciate your time. we'll see you soon. we will be watching this market down 225.
4:15pm
my next zbes not afraid to admit when he's wrong. many of you may have made the mistakes as dennis gartman has. later on, who will buy blackberry? there is pause on the street lenovo should. we will speak with lenovo's president gary smith. we'll be right back. a big initiative on "the closing bell." with axiron, the only underarm low t treatment. axiron can restore t levels to normal . or anyone younger than 18 or men with prostate or breast cancer. women, especially those who are or who may become pregnant and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acne in women may occur. report these symptoms to your doctor. tell your doctor about all medical conditions and medications. serious side effects could include increased risk of prostate cancer; worsening prostate symptoms; decreased sperm count; ankle, feet or body swelling;
4:16pm
enlarged or painful breasts; problems breathing while sleeping; and blood clots in the legs. common side effects include skin redness or irritation where applied, increased red blood cell count, headache, diarrhea, vomiting, and increase in psa. ask your doctor about the only underarm low t treatment, axiron.
4:17pm
4:18pm
>> welcome back. a lot of movers and shakers today, domenic chu on a tough day at the office. >> not just for everybody. you talk about the early morning session, wal-mart came out with disappointing results. now we look at the tech sector. applied materials is what we want to talk about. overall, they come out with earnings that narrowly miss analyst's estimates. 19 cents per share is what they thought they'd report. 18 cents. 19.8 billion. $2.06 billion is what average wall street analysts were expecting. another big piece of news for applied materials is on the person fell side of things because michael splinter is no longer the ceo. he has been elevated by the board of directors to be the new executive chairman at applied
4:19pm
materials. in his place will be again gary dickerson. he is the new ceo over at applied materials. this is a man with a storied career in technology and semi conductors having served as the ceo before they got bought out by applied materials and was previously an ex executive with kola 10 core as well. again, a big story with applied materials, it is about a demand story for them. are people continuing to buy the equipment that makes semi conductors, that makes computer chips. at least here we're seeing weakness, the stock is down just about 3% in the after market trade. >> all right. domenic, thank you so much. the market decline continues today, dennis gartman says he made the wrong call getting back into equities recently. he joins me now with bob dahl, who is with us by telephone. thank you for joining us, gentleman. dennis, you recently got back into the market. >> yes. >> you say you may have been
4:20pm
wrong. >> well, the market tells me i'm wrong. >> it's only one day. >> no, it's two days, troublely. if a market moves me by 2.5 or 3% that is an egregious move. it tells me i'm wrong. i came back in early. i had opinion very bullish. got out on the non-farm pay roms. got back in two days ago. the market is telling me oil wrong. i'm going to the side line, long gold worked today, long cotton, long net gas, that worked, my trades in the stockmarket terrible, i want out. >> yeah, you want out. in other words, you think the selling continues? >> i couldn't hear you, maria. >> so in other words, you think the sell-off continues? >> i'm afraid that it may well. we've heard a lot of talk about the hinden berg-ullman, i don't pay attention when you get one of those, or two of those. give me five or six or three or four in a couple of days, anybody who doesn't pay heed i think is foolish. that was enough this morning.
4:21pm
i actually told people, i'm nervous in the news letter, perhaps it's not a bad time to follow puts. i wish i had followed my own advice. >> bob, are you with us on the telephone? all right. bob will be joining us momentarily, get his take on this move downward, you know, we were talking earlier with rob about this, dennis, in terms of how much further we could see this market decline. what would be your expectation in terms of the right metrics to lock at to indicate whether or not there is a lot more selling to come? >> well, if you start breaking down through 50 and 100-day moving averages, if you start to do that, there will be a lot more damage implied. it's a long way down to the 200-day moving average. i don't think that will happen. it's a long way down to major trend lines. it's probably the summer doldrums. it is probably nothing more than a lot of people like myself got a little too aggressive.
4:22pm
feeling a little uncomfortable. seeing technical circumstances disconcerting. seeing them prevailing in egypt, say, you know what, labor day is coming. let's go to the sidelines. not a bad place to be for a while. >> do you want to see this market fush through certain levels to feel it has cleaned out or do you think we've already broken through those levels? >> i think we've done some damage today and yesterday. i think we've broken a lot of near-term support numbers that, to me, look a little disconcerting. it's not such a bad thing, maria, to go to the side lines once in a while. i had gone two weeks ago. i came back n. i'm wrong for a percent-and-a-half, i'm out. let the mrkt go down, let labor day come. let everybody come back from the beach. let's see what kind of buying we have the first week in september. i think that that's probably the best place to be. i admit when i'm wrong. i have been at this a long time t. game is, there is nothing
4:23pm
wrong with being wrong, there is a lot wrong with remaining wrong. when the mark moves against me two days like this it tells me i'm wrong. >> bob dahl is on the telephone, what is your take on this market sell-off? >> look, i don't think the bull market is over. short term, we are taking a breather. we have a lot of game to digest t.p.e., multiple improve him phase, go imp the fed support seems to have peeked. i think the next move up requires stronger revenues in earnings growth. i believe we will get, not tomorrow, the next day. we're in a bit of a pause. >> bob, it looks to me like earnings actually have desell rated. if you look back from the fourth quarter of 2012 to where we are right now, we certainly have desell rated quite a bit. dell announced earnings a minute ago. they were positive. this is the third positive surprise for the company over the past seven quarters. so, what would it that ec to get earnings to act sell rate again,
4:24pm
bob? we are not seeing it so far. >> correct. stronger economic growth here. we are not there yet. this move has been basically multiple driven. the last 40% move up, roughly the last 18 months. 35% come from p.e.s. so we are probably in a pause until we get that stronger revenue and earnings growth. as you point out, so we could be in a funk. >> all right. we'll be watching. thanks very much, bob. thank you, dennis. we appreciate your time tonight. we will see you both soon. lenovo, a sign of the times, they sell more tablets than computers. are they living to acquire blackberry? lenovo's president will speak to us next. find out the fast dinl fal world. competitors announced, you are watching "the closing bell" first in business world wide.
4:25pm
.
4:26pm
4:27pm
. >>. >> welcome back. len oro is making huge gains. smart devices roads 41% at lenovo, smartphones more than doubled in china. if you do the math, they sell more smartphones and tablets than computers. the talk on wall street is not necessarily about what lenovo is
4:28pm
selling. maybe what they want to be buying. the president of the americas jerry smith joins us exclusively. good to have you on the program. >> thank you. >> thank you for joining us. a good story you are selling more tablets and devices than pcs, right? >> we are proud of that. in the quarter, we had an outstanding quarter. it's a reflection of our strategy, we are now teleselling more phones than tablets. that's a part of our pc plus. we believe we are a device company now. >> i want to ask you about. that all the speculation out there is what is going to happen with blackberry. are you in a position to acquire blackberry in. >> i can't comment on possible acquisitions. i will say right now organically we grew our smartphone business successfully. we will look at potential value and if it fits from a strategy perspective as well. >> so let's look at the difference here him i have a black brry in my hand. can these two merge and be a
4:29pm
better device? what do you think, jerry? >> we will keep looking at all opportunities. >> why wouldn't you buy blackberry in they're so popular? what would stop you, seriously in. >> i think there are lot of other tupts out there as well. >> in the device space? >> in the device space. we have been successful in our acquisition of pcs. the company cc in brazilment we became number 2 in tables in brazil this last quarter and number 2. we have mart phones, tablets with cce. we will continue to be aggressive, that's a part of our strategy, looking at acquisitions, but we got to make sure it's the right value or the fits culturally. >> do you think blackberry is hiked up too much, it's too expensive in. >> i don't want to comment on that, but again we're going to focus on our strategy. we will lock for value. we're very, very proud of the fact that we have been so
4:30pm
successful an now we're very well positioned as a device company moving forward. >> for a long time, this is what we talked about. this is where the growth was in the world, today, john chambers told me brazil, latin is on the downside and uniform is bottoming out. what are you seeing in brazil others are not? >> we had 103% growth in brazil year over year this last quarter. part of that was acquisition. both our lenovo business is growing very, very rapidly. so i think we're seeing the start of a dow refresh on an emerging basis. so you got the world cup in 2014. >> that's true. >> the olympics. i see a lot of pent up demapped in latin america. >> do people have one device, two devices? how does that play in your global acquisition. >> we think, lenovo thinks being
4:31pm
a device is important. i think users will use pcs, tablets as well as phones, they did a survey and found out that 97% of people still use pcs as their primary computing device, their tablet for content and phone on the run. you see a lot of mobile applications as well. i personally think the pc market is not dead. i think it will evolve, i think users will use all three devices going forward. >> you are obviously planning to introduce smartphones in the united states. >> yes, we are. >> this is the phone you look to introduce as the k 900? >> this is the k 900. we will introduce this, a variety of products. we have over 25 different phones for all segments of the marketplace. that's one of our keys of what we think we will be. our goal is to be number one in smart connective devices. we know we have for mid competitors with samsung and
4:32pm
apple. last year, 50% of the phones were premium phones, this year it's itself only 40%. we position ourselves from top to bottom. we have vertically innovated on phones. we have our own factories and capabilities to give us speed. we see our own development capability. phones are refreshing every year. so we got, we think we're at an advantage by having that capability and to be able to compete with the premium guys and be self with the low end products as well. >> what happens to pcs in all this, your screen is bigger, this mobile device is beggar than blackberry, bigger than the iphone, i know you have a three-screen strategy, what happens to pcs while everybody is buying devices. >> pcs are o200 billion dollar mark. again, some people say the pc market is dead, i don't believe it at all. i think the pc market is alive and strong.
4:33pm
there has been some tough periods. i think the device will transform itself. the last time we talked about convertibles. we had a lot of success with their yoga convertible. it's a tabment and a pc together. i think over the next two, three, four quarters, you will see more and more pcs and refresh cycle coming around again. we've seen great growth in our commercial segment this last quarter as well. we view a little commercial refresh coming. r need to refresh, like you said, every year. real quick, are you a chinese company, lenovo, does that affect your decision to go after a company leak blackberry?w3 in there we are a global company. suddenly our top leaders of our company are from different negotiationalities. i don't think it has an impact on our acquisition strategy moving forward. >> you don't think it raises an eye brow for the u.s. government? >> we have a number of
4:34pm
commercial companies who used our thinkpad product for why years. they continue to buy our productsge in forth. >> jerry, what a van tage point for to you talk to us on the day the consumer has been hurt. we learn from cisco an wal-mart. thank you very much, we look forward to fining these products in the u.s. jerry smith, lenovo america's president. tough to remain at the top of the heat, pr firm wpp may soon lose the perch as the world's largest ad agency once google and omnicom gets the green light. the digital hurdles and how a firm could benefit and later do bars make more money when the economy gets tough? "bar rescue" star joins me in our fourth installment of the business of the business beyond reality tv. keep it right here. (announcer) scottrade knows our clients trade and invest their own way. with scottrade's smart text, i can quickly .
4:35pm
4:36pm
4:37pm
. >> whole come back. you are making every effort to keep up with media markets. they made bold challenges for
4:38pm
growth in the digital space. in his first post, in it he says he's raising the revenue chart from 40% four new media to 45% over the next five years. martin joins me right now to talk more about what he sees in the global economy from his you next van tage point. >> it is a unique van tage point. >> so you say fe moment are you the largest? >> i think it's a big bold move, whether it's a good move is another question. it's strategically kourn counter. structurally, it's a bit clunky. co-ceos as you well know don't work. mergers of equals. there is no such thing as mergers and acquisitions. there is the regulation issue. the interesting thing yesterday was with amr, four airlines, 80% market share mixed. some smaller examples and smaller categories where the doe
4:39pm
have concern, brussels, china, those three jurisdiction, hurdles they have to jump. i think at the very lowest the regulatory process will be much longer. the other issue is impact on clients and on people. certainly, clients were not forewarned. what most of them were not taken through it. the people were certainly not. there is very little communication. so we're seeing already in the first i would say 14 days, 15 days, a certain degree of disruption, which we and our competitors will seek to capitalize on. it's a long regulatory process that will be disrupted. >> would you prefer this deal not go lou? >> you know, it's interesting. one interesting request question, one of the things emerging is this sort of duopoly, ourselves and position in a post-pog world there will be two of us.
4:40pm
security departments probably only ned two one against the other, it's not all good news t. other thing it does when are you a challenger as opposed to a leader. we have been here before. number two, number one, if the deal goes through. >> right. >> it makes you a little more ener jet ec. i think you mentioned mutual mobile this afternoon. we've taken a significant minority interest out of austin. we've done five or six deals in brazil, in the u.k., two in asia, you will see more next week, we are getting our skates on and we've moved the targets up as you said in the intro for digital to 40 to 45% of our business an forecast growth markets. >> so what is behind that? why did you move these targets up? what is driving that? >> i wanted to signal to our people we wanted to be a lith little more ener jet ec. if you said to me, what do i
4:41pm
regret about the past five or ten years? we didn't go fast enough. our argue nal target was to get to 140. i get to get our people in 110 countries on that t. other thing we are signaling is this. big certainly has only impact in media buy, but big in our industry, we have been writing about the 20 to 25 years that there are dis-economies of scaling businesses. you know from the newspaper business, you double the size of an editorial department. it's three times more difficult to run. so size for size's sac, outside of media buying, i'm not sure will is much in that. certainly if you have good sets of resources like we have. media buying is a different story. you do get leverage. what is happening in a post-pog world, a duopoly between basically ourselves and pog around the world. >> that makes a lot of sense. let me ask you about what is
4:42pm
going on today. are you in 110 companies like you said. it was all about the consumer. cisco cut 5% of the work force. how does that impact the ad business? >> our clients are getting there to their targets. thigh probably lowered earnings estimates a little bit, fet feathered them down. they are getting there ugly, probably a lot of top line misses in the last four corners. i remembered mohammed delarrian saying he was worried in the third quarter of last 84 companies were running out of room and hitting their top line targets. they're getting there by cost cutting. it goes to clayton christensens innovation theories. there there are big leaps the small leap tase are taking are cost focused. that's why we have an employee less improve him in the economy in general levels we haven't seen in the modern world certainly in western europe and indeed in america for many, many
4:43pm
years. i think what is going on, focus on costs, focus on finance, focus on procure him and that shows in that lack of top lean growth. it can't carry on forever. now, ironically, this concern about inflation. >> right. >> in the you can, here in the u.s. actually gives our clients a little more wiggle room. wal-mart can't rise prices at the consumer level, maybe with a little inflation, with eget more room to maneuver. >> has europe bottomed? . >> i think spain certainly has. banks again in spain, look, it's at a very high cost. you know him, 50% youth unemployment is certainly unacceptable. italy is frivolous. france more to go. but western europe as a whole, u.k. you can and joseph cornelius e germany are the book end of europe, they're stronger than people realize, france, italy, spain, it will take some time, i think as carla slim is
4:44pm
indicating, it's not a bad time to be looking or maybe even buying. >> buying in europe. >> yeah. our business is still challenged there, but it's less. i mean, july surprised us a little on the upside. >> so july was better than you expected. martin, great to see you. >> thank you, maria. >> martin sorell joining us. can you shake off the summer-time blues army in? a leg up on the action. also ahead -- >> what is that? >> that's sugar syrup. there is flies in there. bacteria, e. coli colony t. soda gun is sitting in this. >> it doesn't get any more real than this. the "bar rescue" his hit reality tv show, we'll be back. stay with us. >>. .
4:45pm
4:46pm
4:47pm
. >> welcome back. we have 30 seconds left. good to see you both. jim you are up first. 30 seconds on the clock. what do you want to be prepared for tomorrow? >> over the last couple years, global equity marks moved closer with the u.s. business cycle. er with looking at signs the economy will accelerate in the second half. so that means a housing starts number tomorrow north of 900,000 i hope, confidence numbers from the michigan survey above 80 or 85. now given today's sell-off, i'm also watching for commentary by
4:48pm
the fed regarding their asset purchase program. i don't expect a big change. i think the employment situation is still challenging. i think the fed knows that. >> all right. bruno, you are up. 30 seconds on the clock. what do you want to look at army? >> the markets are off, a proven economy on the other hand, the threat of fed tapering. so we're definitely looking at the consumer inthe exfrom the university of michigan. we think a strong showing will be a negative for stocks. it makes more decase of a more aggressive clip. so in that context, you want to look at what some of the smart money is buying. we like the consumer cyclicals. >> all right. we are watching. that gentleman, thank you very much. we appreciate it. down 225 on the dow. take a short break. there is nothing sadder than an empty bar, who better to whip them into shape than "bar
4:49pm
rescue" bob tapper. we'll learn his secret recipe for success. he's next. tdd#: 1-800-345-2550 then schwab is the place to trade. tdd#: 1-800-345-2550 .
4:50pm
4:51pm
>> welcome back. the dog days of summer no doubt
4:52pm
hitting the market here. for industries like my next guests times like this may be a boone for business. we want to get the real deal with the man who has turned around over 800 bars around the world. "bar rescue's" jon tapper joins me now. he has a book coming out in october called raise the bar. big market sellup today. do bars make more money when times get tough or do people not go to bars? >> today is a good day to have a drink, don't you think, mayorri? >> we found in upswings of the economy and down swings of the economy, spend changes a lot more than traffic levels of guests do. today i'm guessing a lot of people, particularly in the wall street area are going to be out having an extra cocktail or two today. the bar industry can benefit from days like today. >> okay. so silver birch hotels has credited you with increasing
4:53pm
their revenue by 6 billion dollars. what is the secret to success? how do you turn around a bar that's not doing well? >> i don't believe we are in the bar business or the beverage business or the food business. we're in the business of creating reactions. when we create great reactions, we make money. >> what's been the most difficult bar that you have had to rescue? >> well, you know, if we take reactions and we say, boy, a plate of food, the product really isn't the food. the product is the reaction that the food achieves. a lot of bars dis appoint a lot of guests. changing a business is easy. changing people is tough. >> it's really the people that you have to change their sentiment, their mentality, how they approach their own business? >> we do. the bar industry is one of the last independent landscapes in all of business. if we look at chain restaurants,
4:54pm
most industries have become national chains, regional chains. the bar industry is still mostly all independent operators. they function as independents. that's a little different than a change. >> has the number of bars increased? does that add to the sort of issues there, that there are a lot of bars out there? >> you've rescued, what, 800 establishments? >> i have, in almost 30 countries. the recession took its toll. again, what happened is people come to bars but they spend less money. the second public building ever built in america was a war. the first was a church. george washington was our first disti distiller. it's not home and it's not work but we all participate in it at some stage in our lives. >> absolutely. it's a good story. good to have you on the program.
4:55pm
>> great to be here. >> jon taffer joining us with his book, raise the bar. the selloff, my observation is next. we're cracking down on medicare fraud. the healthcare law gives us powerful tools to fight it... to investigate it... ...prosecute it... and stop criminals. our senior medicare patrol volunteers... are teaching seniors across the country... ...to stop, spot, and report fraud. you can help. guard your medicare card. don't give out your card number over the phone. call to report any suspected fraud. we're cracking down on medicare fraud.
4:56pm
let's make medicare stronger for all of us. the most free research reports, customizable charts, powerful screening tools, and guaranteed 1-second trades. and at the center of it all is a surprisingly low price -- just $7.95. in fact, fidelity gives you lower trade commissions than schwab, td ameritrade, and etrade. i'm monica santiago of fidelity investments, and low fees and commissions are another reason serious investors are choosing fidelity. now get 200 free trades when you open an account. trust your instincts to make the call. to treat my low testosterone, my doctor and i went with axiron, the only underarm low t treatment. axiron can restore t levels to normal in about 2 weeks in most men. axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. women, especially those who are or who may become pregnant and children should avoid contact where axiron is applied
4:57pm
as unexpected signs of puberty in children or changes in body hair or increased acne in women may occur. report these symptoms to your doctor. tell your doctor about all medical conditions and medications. serious side effects could include increased risk of prostate cancer; worsening prostate symptoms; decreased sperm count; ankle, feet or body swelling; enlarged or painful breasts; problems breathing while sleeping; and blood clots in the legs. common side effects include skin redness or irritation where applied, increased red blood cell count, headache, diarrhea, vomiting, and increase in psa. ask your doctor about the only underarm low t treatment, axiron.
4:58pm
finally today my observation on today's selloff amid a worrisome economic back drop. today was all about the consumer with two major companies selling the tone. walmart dis pointing with guidance and sysco announcing job cuts for about 4,000 people. once again putting the spotlight on an economy sputtering along at best. what both companies told us today, the consumer is still very nervous and is not overspending and many are having a hard time finding a job or at least one that pays enough to give them extra spending money. i spoke with ceo john chambers who told me emerging markets were part of the problem. meaning the consumer in the emerging markets is likely worse off in the united states and that is leading to business and enterprise customers sitting on cash, not making investments and following through on hire plans.
4:59pm
the good news is europe seems to have bottomed. walmart, the company reporting disappointing earnings today. the fed won't slow down the stimulus in september but it feels like today the investor community is focused on an economy that has clearly slowed. in fact, rich peterson tells me earnings have begun to decelerate from 7.7% to the current quarter of 4 percent with more than 90 percent of the s&p clocking in with earnings. the market is once again focused on reality, not seeing bad economic data as good news on the hope that had fed will prime the pump. its important to remember that even with the u.s. economy not growing much at all we have a market that's up in the double
5:00pm
digits. it was a tough day at the office. the dow jones industrial average town 225 points, nasdaq down 63 points, s&p 500 gave up 24 points. have a great night. thanks for being with me on "closing bell." "fast money" begins right now. live from the nasdaq market site in new york city's times square, i'm melissa lee. our traders tonight are karen finerman, steve enp. grasso. we're tackling the summer swoon. >> summer started out hot. >> we're going to have records here again. >> but was it all just an easy money mirage? can the rally go without the fed or does the cold hard truth lie in the bell weather blu

Terms of Use (10 Mar 2001)